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06 June 2005 15:30  Euro zone finance ministers will tonight discuss the single currency's fall


Euro zone finance ministers will tonight discuss the single currency's fall following the French and Dutch rejection of the EU's constitution, sources said. The euro single currency hit a low of 1.21 usd after the Dutch referendum last Wednesday, down from 1.25 usd ahead of French vote the preceding Sunday. "They will obviously discuss the euro, and probably the conclusion will be that the ongoing political uncertainty is playing a role in its fall," one source said. Another source said of this evening's euro group meeting in Luxembourg: "We will talk about everything."But sources said the call by Italian welfare minister Roberto Maroni for his country to consider temporarily readopting the lira is unlikely to come up. "As (European Central Bank president Jean-Claude) Trichet said, that is absurd," one source said. However, Italian and Portuguese ministers are likely to face questioning on the state of their public finances. The European Commission is due tomorrow to launch disciplinary action against Italy for its repeated breaches of the stability and growth pact's deficit limit of 3 pct of GDP.
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